Occidental (NYSE: OXY) is making progress on growing its CO2 permanent sequestration side of the business. Oxy Low Carbon Ventures – the subsidiary of Occidental, signed an exclusive agreement with Weyerhaeuser Company (NYSE: WY) for the development and operation of a CO2 sequestration hub on more than 30,000 acres of subsurface pore space controlled by Weyerhaeuser.
Oxy will use the land to permanently sequester industrial carbon dioxide (CO2) in underground geologic formations for purposes not associated with enhanced oil recovery. Weyerhaeuser is an American timberland company that owns nearly 12,400,000 acres (50,000 km2) of timberlands in the US.
Weyerhaeuser will continue to manage the aboveground forest and use it as a working forest to make wood products. Oxy, on the other hand, will sequester CO2 underneath.
A subsidiary of Oxy will be using this space – 1PointFive, with the goal to develop a series of carbon capture hubs around the US. The carbon capture and sequestration hubs would be located on the Gulf Coast and across the US.
Some of them are expected to be anchored by direct air capture (DAC) facilities and offer storage capacity for emitters like manufacturing sites and power plants. The hubs have the capacity to sequester up to 200 million metric tons of anthropogenic CO2 emissions.
1PointFive’s primary goal is to play a transformational role in combating climate change through industrial decarbonization of the hard-to-abate industrial sector. The company would also utilize Occidental’s more than 50 years of experience in carbon management.
“We’re excited to work with Weyerhaeuser to grow this side of our business and help reduce carbon emissions. 1PointFive and its planned sequestration hubs are expected to be an expanding side of our business that will work with industrial emitters to capture, transport, and permanently store CO2,” said Richard Jackson, chairman of 1PointFive.